Brazil’s Central Bank Keeps Key Rate at Its Record Low
Brazil held its benchmark interest rate at a record low and signaled it can cut borrowing costs to help a frail economy once a key austerity measure advances further in Congress.
The bank’s board, led by its President Roberto Campos Neto, on Wednesdaykept the Selic unchanged at 6.50% in a decision expected by all but one of the 39 economists in a Bloomberg survey. Officials have held borrowing costs steady for over a year.
In the statement accompanying the decision, the committee wrote that while the external scenario was less adverse, risks associated with a global economic slowdown remained. Domestically, progress on reforms is “essential” for a fall in structural interest rates and for a sustainable economic recovery, it added.
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